The four deadlines in 2026-27
Each tax year has four quarterly updates. The deadline depends on when the update period ends.
| Update period ends | Deadline |
|---|---|
| 5 July | 7 August |
| 5 October | 7 November |
| 5 January | 7 February |
| 5 April | 7 May |
A quarterly update is a set of totals by income and expense category, cumulative from 6 April. It is a summary, not a tax return.
The tax return is submitted after the tax year, and the tax is paid by 31 January.
What a quarterly update covers
Each update is built from digital records and covers one update period. You must still send an update for a period with no income and no expenses.
You can send from the end of the period up to the deadline, or up to 10 days before the period ends if you expect no further transactions. You can send updates more often than quarterly, but each must cover the full update period.
HMRC receives the category totals, not the individual transactions. After each update you can see an estimate of your tax bill in your software or in HMRC online services.
- Standard update periods are aligned to the tax year, 6 April to 5 April.
- Calendar update periods run 1 April to 31 March, ending the last day of the month.
- The deadlines are the same for both period types.
- The accounting period cannot be changed after the first quarterly update has been sent.
What counts as late
A quarterly update is late when it is sent after the deadline for its update period. A missed deadline is a missed submission deadline, and you must still send the update.
For 2026-27, a late quarterly update does not score a penalty point. That does not remove the requirement to keep digital records and send the updates.
A late tax return is still a missed submission deadline, and points apply to the tax return deadline in 2026-27.
Penalty points from tax years after 2026-27
For quarterly updates from tax years after 2026-27, one penalty point is given for each missed submission deadline. The tax return is a submission deadline too, and a missed tax return deadline scores one point.
The threshold is 4 points. At that point a 200 pound penalty applies, then a further 200 pound penalty each time another submission deadline is missed.
Below the threshold, each point is removed automatically 24 months after the missed deadline. At the threshold, points are not removed automatically: 12 months of on-time quarterly updates and tax returns, plus sending outstanding updates and returns for the previous 24 months, are needed.
VAT penalty points are counted separately from MTD ITSA points.
| Submission | 2026-27 | From tax years after 2026-27 |
|---|---|---|
| Quarterly update | No penalty point | One point per missed deadline |
| Tax return | Penalty point applies | Penalty point applies |
Late updates and late payments are separate
A late quarterly update is a missed submission deadline. Late payment penalties are not points based. They apply to each late payment, but not to payments on account.
Late payment interest runs from the first day the payment is late until it is paid in full. If a payment plan is agreed and kept to, penalties are paused from the date HMRC was contacted.
What the software does
HMRC does not provide software, and does not approve, endorse or recommend any product. For MTD ITSA, compatible software must create and store digital records, work with the chosen accounting period, and send the quarterly updates. An all-in-one product also submits the tax return.
HMRC's find software service lists products that meet the requirements for the service. It does not rank them and does not carry prices.
TradeKit keeps digital records, sends quarterly updates and submits the tax return, with CIS and VAT in one app. Statement import is the supported route for bringing in transaction data.
You can use more than one product, but only one product for each separate submission, and the records must be digitally linked between them. You authorise the software so it connects to HMRC, and repeat that every 18 months without repeating the identity check.
Software defaults to an accounting period aligned to the tax year. If your accounting period runs 1 April to 31 March, you select calendar periods before the first update.